Organized Retail Theft (Part-1)

Background

Organized retail theft (ORT) is a growing problem affecting a wide-range of retail establishments, including supermarkets, chain drug stores, independent pharmacies, mass merchandisers, convenience stores, and discount operations. It has become the most pressing security problem confronting retailers. ORT crime is separate and distinct from petty shoplifting in that it involves professional theft rings that move quickly from community to community and across state lines to steal large amounts of merchandise that is then repackaged and sold back into the marketplace. Petty shoplifting, as defined, is limited to items stolen for personal use or consumption.

Organized retail theft is theft from retail stores by professional shoplifters. Such theft is labeled organized theft because it is carried out, for the most part, by professional shoplifters who work for criminal organizations that operate under a set of well-planned procedures and rules. The merchandise stolen by ORT rings is purchased by fences who sell the products to repackers, illegitimate wholesalers, and flea market vendors.

Professional Shoplifter/Booster/Sweeper

A person who shoplifts for money, perhaps as his/her sole source of income, is a professional shoplifter sometimes called a booster or a sweeper.

Sweeper

A professional shoplifter is often referred to as a sweeper. The term describes the method the shoplifter uses when he/she clears an entire shelf of a targeted product, e.g., sweeps clean.

Street Fence

A street fence buys directly from professional shoplifters paying them either in cash or drugs. A street fence is often the owner of a retail or discount store, or the operator of a flea market stand. The street fence usually buys stolen goods from 15 to 30 boosters. The fence trains the boosters, informs them as to the products to steal, and tells them what stores to hit. The street fence also acts as an enforcer, when needed.

Upper-Level Fence

The upper-level fence operates at a “higher level” than a street fence. The upper-level fence generally does not buy directly from boosters. He/she will deal in thefts of full loads of stolen cargo, illegally diverted goods, and goods acquired through credit card scams, “bust out” deals or heists and hijacks. The market for the upper-level fence is usually a repack operation or illegitimate wholesaler.

Repackaging Operation

A repackaging operation usually operates as a wholesale distributor. Repackagers will buy stolen goods from upper level fences and directly from professional cargo thieves. Repackers sort, clean, shrink wrap and repack stolen merchandise to make the goods appear like they were purchased from a manufacturer. Repackers usually have counterfeit manufacturer shipping cartons and have the ability to produce counterfeit UPC codes. Repackers usually sell to illegitimate wholesalers.

Illegitimate Wholesaler

The illegitimate wholesalers are often referred to as product “diverters.” They sell to retailers at prices below the manufacturer’s list price. These companies operate in the“grey market” and secondary wholesale markets to move stolen products back into the legitimate retail market. They will mix legitimate products with stolen products and even produce counterfeit products to make tracking the illegitimate products very difficult.